Arthur Hayes: The market may be refocusing on the "forgotten" Ethereum

Ethereum is the second-largest blockchain ecosystem by market capitalization and the primary settlement layer for a broad range of decentralized applications, stablecoins, tokenized assets and decentralized finance protocols. Yet its market narrative has been surprisingly weak compared with Bitcoin for much of 2026.

Arthur Hayes, co-founder of BitMEX and a closely followed crypto market commentator, recently suggested that this could be changing. Hayes said Ethereum had effectively been “forgotten” by the market, but that improving performance against Bitcoin could encourage investors to pay attention to ETH again.

The timing is notable. Ethereum has recently moved back into the spotlight after months of relatively weak sentiment. ETH climbed above $2,300 in late August and briefly tested the $2,400 area, while its relative performance against Bitcoin also began attracting attention.

Hayes’ argument is not simply that Ethereum is rising. His more important point is that capital allocation within crypto may be changing. If investors begin moving from Bitcoin and other assets toward ETH, Ethereum could experience a second phase of repricing driven by renewed demand rather than merely a broad market rally.

Why ETH/BTC Matters for Ethereum’s Market Narrative

The ETH/BTC ratio measures the price of Ethereum relative to Bitcoin. Instead of asking whether ETH is rising in U.S. dollar terms, it asks a different question: Is Ethereum outperforming Bitcoin?

This distinction matters because Bitcoin remains the benchmark asset for the cryptocurrency market. During periods of strong Bitcoin dominance, investors often concentrate capital in BTC because of its liquidity, established narrative and role as the market’s primary store-of-value asset.

When ETH/BTC begins recovering, however, it can signal that traders are becoming more willing to take exposure to Ethereum.

Hayes has specifically pointed to the rebound in ETH/BTC as evidence that the market may be reconsidering Ethereum. Recent reports also describe the ratio as having recovered from its lows, raising the possibility of renewed capital flows into ETH.

For investors, this is an important distinction. Ethereum does not necessarily need to outperform Bitcoin dramatically in absolute terms to improve its market position. A sustained improvement in ETH/BTC could itself indicate that Ethereum is regaining relative strength.

What Is Driving Renewed Interest in Ethereum?

Several developments are helping explain why Ethereum has returned to the conversation.

The first is price momentum. Ethereum recently moved above $2,300 and approached $2,400, showing stronger performance than it had earlier in the year. Although short-term price movements remain volatile, the recovery has changed the market conversation around ETH.

The second is institutional demand. BitMine Immersion Technologies, one of the most visible corporate Ethereum holders, recently purchased another 53,501 ETH in a single week. Its holdings were approaching 5.9 million ETH, reinforcing the broader narrative that some institutional investors are treating Ethereum as a strategic treasury asset.

The third is the evolution of Ethereum investment products. Traditional investors increasingly have ways to gain ETH exposure without directly managing wallets, private keys or validators. More importantly, staking-enabled products can potentially add an income component to ETH exposure.

This changes the investment proposition. Instead of simply asking whether Ethereum’s price will increase, investors can also consider whether ETH can generate native network rewards through staking.

Ethereum Staking and the Rise of Yield-Bearing ETFs

Ethereum uses a proof-of-stake consensus mechanism. Validators lock ETH into the network and help process and secure transactions. In return, eligible participants can receive staking rewards, although those rewards come with technical, market and operational risks.

For years, this created an important difference between holding ETH directly and owning an Ethereum ETF. A traditional spot ETF could provide price exposure, but investors generally did not receive the staking component.

That distinction has become less significant as staking-enabled Ethereum investment products have emerged.

For example, the 21Shares Ethereum Staking ETF is designed to provide ETH exposure while potentially reflecting staking rewards from a portion of its holdings, subject to the product’s legal and operational framework.

The significance goes beyond a single ETF. Staking can give Ethereum a different institutional narrative from Bitcoin. Bitcoin is often described as digital gold, while Ethereum can increasingly be viewed as a productive digital asset tied to an active blockchain economy.

That does not automatically make ETH a better investment. Staking introduces risks including validator penalties, liquidity constraints and regulatory uncertainty. Nevertheless, the possibility of earning blockchain-native rewards may make Ethereum more attractive to certain long-term investors.

Institutional Accumulation Is Changing the ETH Story

Another important development is the emergence of corporate Ethereum treasury strategies.

BitMine has become one of the most prominent examples. Its continued accumulation strategy demonstrates how companies can use corporate capital to build large ETH positions rather than treating cryptocurrency merely as a short-term trading asset. Its latest weekly purchase was reportedly its largest since June, extending a long-running accumulation streak.

This matters because institutional buying can influence Ethereum in two ways.

First, it creates direct demand for ETH. Second, it changes how investors conceptualize the asset. If companies increasingly hold ETH as a treasury asset and stake part of their holdings, Ethereum begins to resemble an asset that can potentially combine capital appreciation, network participation and native yield.

Hayes’ renewed optimism therefore arrives at a time when Ethereum’s market structure is evolving.

At the same time, investors should not interpret every large corporate purchase as proof of a guaranteed bull market. Corporate treasury strategies can be highly concentrated, sensitive to financing conditions and dependent on ETH’s market performance.

Can Ethereum Sustain Its Comeback?

The biggest question is whether Ethereum’s recent strength represents a temporary rotation or the beginning of a longer-term trend.

A sustained recovery would likely require more than a rising ETH price. Investors may want to watch several indicators.

One is the ETH/BTC ratio. If Ethereum continues outperforming Bitcoin, it would provide stronger evidence that the market is changing its relative preference.

Another is ETF demand. Persistent institutional inflows would suggest that the renewed interest is not limited to crypto-native traders.

A third factor is staking participation. Greater institutional use of staking products could strengthen Ethereum’s yield-based investment narrative.

Finally, Ethereum needs continued growth in its underlying ecosystem. Stablecoins, decentralized finance, tokenized real-world assets and Layer 2 networks all contribute to Ethereum’s fundamental value proposition. Price momentum can attract attention, but long-term valuation ultimately depends on whether the network continues to support meaningful economic activity.

The current environment therefore remains a test rather than a conclusion. Ethereum has regained attention, but it still needs to demonstrate that the market’s renewed interest can persist.

What the “Forgotten Ethereum” Thesis Means for Investors

Hayes’ “forgotten Ethereum” argument is useful because it highlights a common feature of financial markets: assets can become unpopular long before their underlying fundamentals disappear.

Ethereum’s weak relative performance encouraged investors to focus elsewhere. Bitcoin retained its dominant institutional narrative, while newer sectors such as artificial intelligence, tokenized assets and alternative Layer 1 ecosystems competed for capital.

But market attention is cyclical.

When an asset begins outperforming after a prolonged period of weakness, investors may start reassessing whether expectations had become too pessimistic. That appears to be what Hayes is pointing toward with Ethereum.

This does not mean ETH is guaranteed to outperform Bitcoin or that its price must continue rising. Crypto markets remain highly sensitive to liquidity, interest rates, regulation and broader risk appetite. Ethereum also faces competition from other blockchain ecosystems and must continue demonstrating why its network deserves a significant share of future on-chain activity.

Still, the combination of improving ETH/BTC performance, institutional accumulation and staking-based investment products gives Ethereum a stronger narrative than it had several months ago.

The central question is therefore no longer simply whether Ethereum is “dead” or “alive.” It is whether the market is beginning to reprice Ethereum from an overlooked crypto asset into a strategic digital infrastructure asset with potential yield and network utility.

That is the deeper significance behind Hayes’ latest comments.

FAQ

Why does Arthur Hayes think Ethereum is being rediscovered?

Hayes has pointed to Ethereum’s improving performance against Bitcoin. In his view, ETH had been largely overlooked, but the recovery in the ETH/BTC ratio could signal renewed market interest.

What is the ETH/BTC ratio?

The ETH/BTC ratio compares Ethereum’s price with Bitcoin’s price. A rising ratio means ETH is outperforming BTC, while a falling ratio means Bitcoin is outperforming Ethereum.

Why is Ethereum staking important?

Staking allows ETH holders to participate in network security and potentially earn rewards. For institutional investors, staking can make ETH exposure more attractive because it introduces a potential yield component.

Is Ethereum’s recovery guaranteed to continue?

No. ETH remains exposed to cryptocurrency market volatility, macroeconomic conditions, regulation and competition from other blockchain networks. A sustained recovery would require continued relative strength, institutional demand and ecosystem growth.